00:01
Hello! so yes, the prisoner's dilemma is going to be a very fundamental concept in game theory that illustrates the tension between individual and collective rationality.
00:10
So our scenario is that we have two prisoners, column a and b, right, that are arrested for a crime.
00:16
Now they are kept in separate rooms and cannot communicate and the police don't have enough evidence to convict both of a major crime but have enough evidence to convict them of a lesser crime.
00:27
So we have choices.
00:28
We'd either have either if both a and b remain silent, so that means they would cooperate with each other, they would serve one year in prison which would be a lesser charge, but then if a betrays b but b remains silent and then a goes free while b gets three years in prison which would be the major charge.
00:50
So if b betrays a but a remains silent, b goes free while a gets three years in prison and then let's say if both a and b betray each other, they both get two, they both would then serve two years in prison.
01:06
So the dilemma here is that from an individual perspective, it's rational for each prisoner to betray the other...